Demography

  • Beauty pays but does investment in beauty?

    Despite the large returns from an attractive appearance, the cost-effectiveness of investment in beauty is ambiguous

    Soohyung Lee, October 2015
    Being beautiful gives a person an advantage in many settings. Attractive people earn more and have an easier time getting hired. People spend large amounts of money on goods and services to enhance their beauty. Is this enhancement worth pursuing? Research suggests that the expected improvement in beauty from these goods and services is limited. Therefore, despite the large returns from having an attractive appearance, the cost-effectiveness of investment in beauty enhancement is ambiguous. For the average person, the monetary benefits of plastic surgery, medical treatments to increase height, and expensive clothing are not worth the cost.
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  • Disability and labor market outcomes

    Disability is associated with labor market disadvantage; recent evidence points to a causal relationship

    Melanie Jones, April 2016
    In Europe, about one in eight people of working age report having a disability; that is, the presence of a long-term limiting health condition. Despite the introduction of a range of legislative and policy initiatives designed to eliminate discrimination and facilitate retention of and entry into work, disability is associated with substantial and enduring employment disadvantages. Identifying the reasons for this is complex, but critical to determine effective policy solutions that reduce the social and economic costs of disability disadvantage.
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  • Do anti-discrimination policies work?

    A mix of policies could be the solution to reducing discrimination in the labor market

    Marie-Anne Valfort, May 2018
    Discrimination is a complex, multi-factor phenomenon. Evidence shows widespread discrimination on various grounds, including ethnic origin, sexual orientation, gender identity, religion or beliefs, disability, being over 55 years old, or being a woman. Combating discrimination requires combining the strengths of a range of anti-discrimination policies while also addressing their weaknesses. In particular, policymakers should thoroughly address prejudice (taste-based discrimination), stereotypes (statistical discrimination), cognitive biases, and attention-based discrimination.
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  • Do youths graduating in a recession incur permanent losses?

    Penalties may last ten years or more, especially for high-educated youth and in rigid labor markets

    Bart Cockx, August 2016
    The Great Recession that began in 2008–2009 dramatically increased youth unemployment. But did it have long-lasting, adverse effects on the careers of youths? Are cohorts that graduate during a recession doomed to fall permanently behind those that graduate at other times? Are the impacts different for low- and high-educated individuals? If recessions impose penalties that persist over time, then more government outlays are justified to stabilize economic activity. Scientific evidence from a variety of countries shows that rigid labor markets can reinforce the persistence of these setbacks, which has important policy implications.
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  • Does hot weather affect human fertility?

    Hot weather can worsen reproductive health and decrease later birth rates

    Alan Barreca, July 2017
    Research finds that hot weather causes a fall in birth rates nine months later. Evidence suggests that this decline in births is due to hot weather harming reproductive health around the time of conception. Birth rates only partially rebound after the initial decline. Moreover, the rebound shifts births toward summer months, harming infant health by increasing third trimester exposure to hot weather. Worse infant health raises health care costs in the short term as well as reducing labor productivity in the longer term, possibly due to lasting physiological harm from the early life injury.
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  • Does it pay to be beautiful?

    Physically attractive people can earn more, particularly in customer-facing jobs, and the rewards for men are higher than for women

    Eva Sierminska, June 2015
    It is a well-established view amongst economists that good-looking people have a better chance of employment and can earn more than those who are less physically attractive. A “beauty premium” is particularly apparent in jobs where there is a productivity gain associated with good looks, though this is different for women and men, and 
varies across countries. People also sort into occupations according to the relative returns to their physical characteristics; good-looking people take jobs where physical appearance is deemed important while less-attractive people steer away from them, or they are 
required to be more productive for the same wage.
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  • Does return migration influence fertility at home?

    Migrants encounter different fertility norms while abroad, which they can bring back upon returning home

    Simone Bertoli, November 2015
    Demographic factors in migrant-sending countries can influence international migration flows. But when migrants move across borders, they can also influence the pace of demographic transition in their countries of origin. This is because migrants, who predominantly move on a temporary basis, encounter new fertility norms in their host countries and then bring them back home. These new fertility norms can be higher or lower than those in their country of origin. So the new fertility norms that result from migration flows can either accelerate or slow down a demographic transition in migrant-sending countries.
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  • Economic effects of differences in dialect

    Dialects show regional cultural variation, making the idea of standardized national labor markets misleading

    Jens Suedekum, January 2018
    Countries are not perfectly integrated market areas. Even if institutional differences are much smaller within than between countries, there are persistent local cultural differences. These differences act as barriers that reduce economic exchange: bilateral migration, trade, and knowledge diffusion flows are smaller, and individuals discriminate against unfamiliar dialects. They also act as natural limits to the degree of integration of a labor market, and they cannot (and perhaps should not) be easily affected by policy. Local dialects, shaped over centuries, provide a unique opportunity to measure these barriers.
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  • Fertility postponement and labor market outcomes

    Postponed childbearing increases women’s labor market attachment but may reduce overall fertility

    Massimiliano Bratti, January 2015
    The rise in the average age of women bearing their first child is a well-established demographic trend in recent decades. Postponed childbearing can have important consequences for the mother and, at a macro level, for the country as a whole. Research has focused on the effect postponing fertility has on the labor market outcomes for mothers and on the total number of children a woman has in her lifetime. Most research finds that postponing the first birth raises a mother’s labor force participation and wages but may have negative effects on overall fertility, especially in the absence of supportive family-friendly policies.
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  • Institutional long-term care and government regulation

    Focus on family and portable allowances to lower the costs of institutional long-term care while monitoring its quality

    Elena Stancanelli, August 2015
    The demand for institutional long-term care is likely to remain high in OECD countries, because of longer life expectancy and falling cohabitation rates of the elderly with family members. As shortages of qualified nurses put a cap on the supply of beds at nursing homes, excess demand builds. That puts upward pressure on prices, which may not reflect the quality of the services that are provided. Monitoring the quality of nursing home services is high on the agenda of OECD governments. Enlisting feedback from family visitors and introducing portable benefits might improve quality at little extra cost.
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